POST UTME AAUA 2019 Accounting | Objective

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Question 1 View Details
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦10,000 and an NSF cheque of ₦5,000. What is the correct balance in the company's cash book?
A. ₦125,000
B. ₦130,000
Correct C. ₦135,000
D. ₦140,000

Correct Answer: C

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Question 2 View Details
A company uses the double-entry system of accounting. It records the following transactions: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the company's balance sheet?
Correct A. Increase in Cash and decrease in Purchases
B. Decrease in Cash and increase in Purchases
C. No effect on Cash and Purchases
D. Increase in Purchases and decrease in Cash

Correct Answer: A

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Question 3 View Details
A company's trading account shows a profit of ₦50,000. The company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦200,000. What is the company's net worth?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 4 View Details
A government agency uses the accrual basis of accounting. It records the following transactions: Debit Salaries ₦50,000, Credit Salaries Expense ₦50,000. What is the effect of this transaction on the agency's financial statements?
A. Increase in Salaries and decrease in Salaries Expense
Correct B. Decrease in Salaries and increase in Salaries Expense
C. No effect on Salaries and Salaries Expense
D. Increase in Salaries Expense and decrease in Salaries

Correct Answer: B

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Question 5 View Details
A company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦200,000. The company's net worth is ₦300,000. What is the company's equity?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 6 View Details
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5% debentures of ₦100 each. Prepare the journal entries for the issue of shares and debentures.
A. Debit Share Capital ₦100,000, Credit Cash ₦100,000
B. Debit Share Capital ₦500,000, Credit Cash ₦500,000
Correct C. Debit Share Capital ₦500,000, Credit Cash ₦500,000 and Debit Debentures ₦500,000
D. Debit Share Capital ₦500,000, Credit Cash ₦500,000 and Credit Debentures ₦500,000

Correct Answer: C

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Question 7 View Details
A company's trial balance as at 31st December 2022 is as follows: Assets: Cash ₦50,000 Debtors ₦100,000 Stock ₦150,000 Equipment ₦200,000 Accruals ₦20,000 Liabilities: Creditors ₦80,000 Capital ₦200,000 Prepare the company's balance sheet as at 31st December 2022.
Correct A. ₦50,000 Cash, ₦100,000 Debtors, ₦150,000 Stock, ₦200,000 Equipment, ₦20,000 Accruals, ₦80,000 Creditors, ₦200,000 Capital
B. ₦50,000 Cash, ₦100,000 Debtors, ₦150,000 Stock, ₦200,000 Equipment, ₦20,000 Accruals, ₦80,000 Capital, ₦200,000 Creditors
C. ₦50,000 Cash, ₦100,000 Stock, ₦150,000 Equipment, ₦200,000 Debtors, ₦20,000 Accruals, ₦80,000 Creditors, ₦200,000 Capital
D. ₦50,000 Cash, ₦100,000 Debtors, ₦150,000 Stock, ₦200,000 Equipment, ₦20,000 Creditors, ₦80,000 Accruals, ₦200,000 Capital

Correct Answer: A

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Question 8 View Details
A company's manufacturing account for the year ended 31st December 2022 is as follows: Opening Stock ₦50,000 Purchases ₦150,000 Direct Labour ₦20,000 Overheads ₦30,000 Closing Stock ₦80,000 Calculate the cost of goods sold for the year.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 9 View Details
A company's departmental accounts for the year ended 31st December 2022 are as follows: Department A: Sales ₦100,000 Cost of Goods Sold ₦60,000 Profit ₦40,000 Department B: Sales ₦80,000 Cost of Goods Sold ₦40,000 Profit ₦40,000 Calculate the total profit for the year.
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 10 View Details
A company's public sector accounts for the year ended 31st December 2022 are as follows: Receipts ₦200,000 Expenditure ₦150,000 Surplus ₦50,000 Calculate the percentage increase in receipts.
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11 View Details
A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and it has a weightage of 30%. The cost of inventory B is ₦80,000, and it has a weightage of 40%. The cost of inventory C is ₦60,000, and it has a weightage of 30%. What is the total value of the inventory?
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 12 View Details
A company has two departments: A and B. Department A has a budget of ₦100,000, and it has spent ₦80,000. Department B has a budget of ₦80,000, and it has spent ₦60,000. What is the total budget of the company?
A. ₦180,000
B. ₦200,000
Correct C. ₦220,000
D. ₦240,000

Correct Answer: C

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Question 13 View Details
A company uses the straight-line method to depreciate its assets. The cost of the asset is ₦120,000, and it is expected to last for 5 years. What is the annual depreciation?
A. ₦20,000
Correct B. ₦24,000
C. ₦28,000
D. ₦32,000

Correct Answer: B

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Question 14 View Details
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Accounts Payable | | 8,000 | | 3 | Sales | | 12,000 | | 4 | Cost of Goods Sold | | 8,000 | What is the total amount of cash received?
Correct A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000

Correct Answer: A

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Question 15 View Details
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Accounts Payable | | 8,000 | | Sales | | 12,000 | | Cost of Goods Sold | | 8,000 | What is the total amount of cash received?
Correct A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000

Correct Answer: A

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Question 16 View Details
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After 6 months, A withdraws ₦100,000 and B withdraws ₦50,000. The profit for the year is ₦200,000. Calculate the share of profit for A.
Correct A. ₦80,000
B. ₦60,000
C. ₦40,000
D. ₦20,000

Correct Answer: A

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Question 17 View Details
A company issues 5,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
Correct A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: A

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Question 18 View Details
A manufacturing company produces two products, X and Y. The selling price of X is ₦500 per unit and the selling price of Y is ₦300 per unit. The company produces 200 units of X and 300 units of Y. If the total cost of production is ₦1,500,000, calculate the profit.
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 19 View Details
A company has a cash book balance of ₦500,000 and a bank balance of ₦200,000. The company's cash book shows a debit balance of ₦100,000. What is the bank reconciliation statement?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 20 View Details
A public sector organization has a budget of ₦1,000,000 for a project. The organization has already spent ₦800,000. What is the percentage of the budget spent?
Correct A. 80%
B. 70%
C. 60%
D. 50%

Correct Answer: A

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Question 21 View Details
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: A

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Question 22 View Details
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 23 View Details
A company issues 1,000 shares of common stock at ₦10 per share. If the company also issues 500 shares of preferred stock at ₦20 per share, what is the total amount of cash received from the issuance of stock?
A. ₦15,000
B. ₦20,000
C. ₦25,000
Correct D. ₦30,000

Correct Answer: D

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Question 24 View Details
A company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: Type A (100 units, ₦50 per unit), Type B (200 units, ₦75 per unit), and Type C (300 units, ₦25 per unit), what is the total value of the inventory?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 25 View Details
A company's balance sheet shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. What is the company's total liabilities and equity?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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